§ 11. Mr. Andrew Lansley (South Cambridgeshire)When she last met the chairman and chief executive of Royal Mail to discuss postal services and prices; and if she will make a statement. [90943]
§ The Minister for E-Commerce and Competitiveness (Mr. Stephen Timms)Ministers and officials have a regular dialogue with directors of Royal Mail on a range of issues relevant to the role that my right hon. Friend the Secretary of State has as a special shareholder of the company.
§ Mr. LansleyWill the Minister say when he or the Secretary of State last met the chairman and chief executive of Royal Mail? Was the price control regime proposed by Postcomm discussed? In particular, if Postcomm withdraws from the extension of the scope of price control over Royal Mail—which seems to me and others who believe in competition to be somewhat excessive—will the Post Office not seek to delay matters by going to the Competition Commission? Incidentally, did the Minister express reservations about the Post Office's proposals in relation to format-based pricing?
§ Mr. TimmsThe hon. Gentleman is an experienced observer of arrangements for competition regulation and will know that there have been animated discussions between Royal Mail and Postcomm over Royal Mail's recent application for a price rise. Postcomm is an 813 independent regulator and it is important that it and Royal Mail agree a way forward that is acceptable to all parties. I am optimistic that will be the outcome. In terms of the discussions, Postcomm is a fully independent regulator. In looking at the current price rise application, the Government have of course submitted information of which Postcomm will take account but the decision is entirely for Postcomm.
§ Mr. Bob Blizzard (Waveney)Returning to the vital role that rural post offices play and bearing in mind that most village post offices are also shops, is not the best way to ensure their survival for the people who live in villages to use those post offices regularly? Is it not the case that if all the people who regularly drive to a supermarket and spend £40 or £50 to fill their car boots spent just 10 per cent. in their village shops/post offices, that would ensure the survival of the rural network?
§ Mr. TimmsMy hon. Friend is absolutely right. The Post Office has an important role to play in taking advantage of the big investment that has been made in new technology and offering new services that will attract people back to the post office network, to ensure that it has a thriving future.